Asian Stocks Decline On Tech Slide

Asian Stocks Decline On Tech Slide by Adam Rosen last updated on May 04, 2024

Meta Platforms (Meta) released their earnings forecast which was disappointing at best. As a result, most of the tech stocks started to decline which also weighed heavily on the Asian stocks.

Another major development was the Japanese Yen (JPY) which also crossed the 155.00 handle against the greenback. That marks the first time since all the way back in 1990 when Tokyo went ahead with major intervention.

Meta Stock Down By 15%

Overall, Meta Platforms (META) dived by 15% as the Facebook parent showed a weak revenue forecast for the quarter. At the same time, the parent company showed higher expenses which made things worse for them.

All of this was not taken well by the investors as they ended up selling most of the tech stocks in the USA and the Asian region.

If we look at the MSCI which represents the broadest index of Asian shares, it was down by 0.5%. Additionally, the Nikkei index from Japan also declined by 2%.

In fact, the same mood can be seen in the EU stock markets as the Eurostoxx 50 futures also showed a decline of 0.12%. Similarly, the DAX futures from Germany were down by 0.15% while the FTSE futures showed a slide of 0.06%.

It appears that the data from the tech companies was in focus during the earnings release week. Up ahead is the earnings release from Microsoft, Intel, Alphabet, & other big names.

According to an expert from Pepperstone , the Meta earnings forecast could serve as a guide for what's ahead in the upcoming data from tech companies. If that's the case, it will make perfect sense as most of them showed good results during Q1 and Q2.

In the EU, the earnings of major companies are also up ahead such as BNP Parabis, Deutsche Bank, Barclays, and so on.

While the rest of the tech stocks are under pressure, the Tesla (TSLA) stock received a boost after the news of new & affordable EV models.